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TMI Blog1968 (7) TMI 12X X X X Extracts X X X X X X X X Extracts X X X X ..... s known as " Trichur Vegetable Stores " and " Trichur Grocery ". P. P. Johny filed a return on December 6, 1960, of his personal income for the assessment year 1960-61. He included in it his half share of the income from the " Trichur Vegetable Stores " as Rs. 257.09. The Income-tax Officer, after calling for and examining the separate books of account of the " Trichur Vegetable Stores ", fixed its income for the relevant period as Rs. 2,724 and Johny's share of it as Rs. 1,362. The assessment on Johny was accordingly completed on December 17, 1960. Thereafter, the Income-tax Officer proceeded to assess separately for the assessment year 1960-61 the income of the " association of persons " consisting of Johny and Devassikutty. He fixed the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct, 1922. The main charging section in that Act is section 3. It is in the following terms : "Where any Central Act enacts that income-tax shall be charged for any year at any rate or rates tax at that rate or those rates shall be charged for that year in accordance with, and subject to the provisions of this Act in respect of the total income of the previous year of every individual, Hindu undivided family, company and local authority, and of every firm and other association of persons or the partners of the firm or the members of the association individually. " It is clear from the section that the same income cannot be charged repeatedly in the hands of different persons or in the hands of the same person. In the present case the incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd the tax levied thereon was paid by them. When later on the department initiated assessment proceedings and assessed the income of the association in its hands some members of the association moved the Allahabad High Court for relief against the order of assessment. That court disposed of that matter in favour of the assessee. It is stated as follows in that decision: " In the present case, the income which was earned by the association was assessed and charged to tax in the hands of the members of the association individually under one of the alternatives provided under section 3 of the Income-tax Act. This assertion of the petitioners is admitted by the opposite party, the Income-tax Officer, in the counter affidavit filed on his beha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd we had to fall back on section 3 of the Act reading in it a provision which enables the income-tax department to charge tax only once on the income and not more than once. In the present case, this income of the association has already been charged in the hands of the members of the association individually and the assessment and the charge of tax under that assessment have not yet been set aside. In fact, those orders of assessment have not been challenged. The position has proceeded further and the tax, which was charged, had actually been realised. While the income had already once been charged to tax and the tax realised, we cannot see how the same income can now be assessed and charged to tax again in the hands of the association. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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